Jababeka subsidiary secures loan for Kendal Industrial Park expansion

By Romel S. Gurky

PT Kawasan Industri Kendal (KIK), a subsidiary of publicly listed industrial estate developer PT Jababeka Tbk (IDX: KIJA), has secured a term loan facility worth IDR 1.2 trillion ($67.8 million) from state-owned lender PT Bank Rakyat Indonesia (Persero) Tbk (BRI) to support the expansion of Kendal Industrial Park in Central Java.

The agreement was signed on May 21, according to a statement released by Jababeka on Friday.

The financing package consists of a non-revolving term loan facility with a tenor of 10 years and an availability period of up to 24 months.

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Jababeka said the proceeds will mainly be used for general corporate purposes related to the development of Kendal Industrial Park, including land development and supporting infrastructure construction.

As part of the financing arrangement, KIK will provide collateral comprising certain land assets, fixed assets, and receivables linked to the industrial estate’s development activities.

Kendal Industrial Park, a joint venture between Jababeka and Singapore-based Sembcorp Development, has become one of Indonesia’s key manufacturing and logistics hubs, attracting both domestic and foreign investment in recent years.

Jababeka said the new financing is expected to support the continued expansion of the industrial estate and strengthen KIK’s long-term development pipeline.

Editing by Alexander Ginting